Actuarial Fiscal Note


Retirement Systems Impacted by Legislation:

PERS

FUND(S):

PERS 2510

Sources of Revenue:

Other Fund State and Local Govts

Legislation creates:

Neither Program nor Fund



Actuarial Note Summary

Impact this measure will have on the liabilities and contributions associated with the retirement system(s).


    The bill as drafted provides a very specialized window for the repurchase of prior service under PERS. Member must be hired before February 1, 2004, have worked at least 10 years, attained age 68. Member must repay repurchase amount within 90 days fo tenth year of service.
    
    Exposure is extremely limited anad expected to benefit one member. Actuarial cost for an average member estimated at $50,000 impacting long term actuarial experience.



Fiscal Detail of Actuarial Impact

Impact on current benefit costs, prior service benefit costs and ongoing contribution requirements following full implementation.


Impact On Following Full Implementation
Increase in Unfunded Actuarial Accrued Liability Initial Impact on Annual Contribution Requirement of System(s) Contribution Increase as a Percentage of Annual Payroll
Total Annual Costs $50,000.00 $50,000.00 0.00 %
Normal Cost of System N/A $0.00 0.00 %
Past Service Liabilities $50,000.00 $50,000.00 0.00 %
Fiscal Year Past Service
Amortization Period Ends
N/A FY2015 N/A


Explanation of above Actuarial estimates:


    Cost is estimated on an average cost basis for special window. Actuarial Accrued Liability is estimated at $50,000 as a single one year cost increase.

Analysis of Impact on Public Pension Policy:


    Repurchase eligibility window provided very limited eligibility for the repurchase. One member is assumed for cost purposes.



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The bill as drafted provides a very specialized window for the repurchase of prior service under PERS. Member must be hired before February 1, 2004, have worked at least 10 years, attained age 68. Member must repay repurchase amount within 90 days fo tenth year of service.
    
    Exposure is extremely limited anad expected to benefit one member. Actuarial cost for an average member estimated at $50,000 impacting long term actuarial experience.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 50,000 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above Fiscal Note estimates (include possible long-range effect):


    Cost is estimated on an average cost basis for special window. Actuarial Accrued Liability is estimated at $50,000 as a single one year cost increase.



Memorandum


    Repurchase eligibility window provided very limited eligibility for the repurchase. One member is assumed for cost purposes.



    Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
    Email Address: harry.w.mandel@wv.gov